Building a solid banking foundation

Strongly optimistic about the future of Indonesia's banking sector, Jakarta-based Bank Bukopin, founded in 1970, intends to build on past successes to become a dependable financial institution ready to serve customers throughout the country.

Today, both public and governmental trust in the bank has reached an all-time high.

It was the first Indonesian bank to exit an industry-wide restructuring program implemented in the wake of the 1997 Asian currency crisis.

Although its focus has been on micro, cooperative, and small and medium-sized enterprises, Bukopin has also developed commercial, consumer and international banking services, and has set up a Sharia banking unit in line with its vision to provide a complete range of services for its growing clientele.

Bank Bukopin intends to build one of the most highly reputable banks in the industry based on the strength of its large network, real-time online IT support, and wide customer base in micro, cooperative, small and medium enterprises, according to CEO Glen Glenardi.

While Glenardi is pleased with Bank Bukopin's achievements, he is optimistic that the improving macro economic condition within Indonesia will have a positive impact on the country's major industries.

"There is optimism in the general business and banking sectors that there will be economic growth of about 5.7 to 6.3 percent in 2007. The Central Bank of Indonesia has lowered interest rates in a careful and calculated manner and for the Indonesian banking sector, this means more flexibility to increase our intermediation functions and allocate funding to a variety of expanding business sectors," he noted.

This economic stability is reflected in the country's well-controlled inflation rate, stronger currency and rising main stock market index, all of which allow banks such as Bukopin to grow further.

In December 2006, Bank Bukopin's net income surged 22.81 percent from the previous year's figures, to touch about $34.74 million. Total assets of the bank were around $3.48 billion as of last year, with debt-to-asset ratio staying at healthy levels.

With those figures, Glenardi believes Bank Bukopin is set to grow into a more solid financial institution.

"Our sound macro economic condition increases our optimism for 2007 and will enable us to increase our business volume," he said.

"We will develop new and existing businesses and acquire as many business opportunities as possible through our creative and innovative business development patterns." he added.

www.bukopin.co.id

All the stories on this page provided by World Eye Reports

(China Daily 08/17/2007 page19)